10 Reasons Cisco Is Down, But Not Out

Don Reisinger

Companies Grow From Adversity

History shows that in the technology industry companies tend to grow from adversity as long as they have a solid foundation of products. Cisco has that, especially in its router and switching business. It wasn't long ago that another company Applewas in an even more difficult position and overcame adversity. Maybe Cisco can follow suit.

Just about everywhere you turn today, you'll find someone saying something bad about Cisco. The company's recent decision to lay off 6,500 employees and sell off a manufacturing plant where it had 5,000 employees has only served to pump up the volume on the chorus of critics who say that Cisco's best days are behind it, and it might be trounced by a competitor. Admittedly, when one looks at where things stand right now, it's not difficult to jump to that conclusion. Cisco seems like it's in disarray, and the company's management has done little quell unrest on Wall Street. Even worse, corporate users are unsure where the company is headed in the future, causing them to rethink their roadmaps. In many ways, it's a nightmare scenario for Cisco. But before the alarms are sounded, it's important to point out that it's not all bad. Cisco is taking action to fix things, and it has apparently changed up its strategy to more effectively focus on the enterprise market. And in the coming years, all those critics might just find a company in Cisco that's bigger and better than ever.

Here's a look at why Cisco might be down, but it's certainly not out.

Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.